For live in a house that we like and that is closest to our needs is clear that we must always face the costs. We spend money to buy the furniture and therefore furnish the four walls and to renovate our apartment to make it more modern and functional. To reach this goal, many young people decide to take out a home loan that allows them to meet all the expenses associated with their home and their restyling. This loan is an alternative to the mortgage loan for the capital disbursed by the financial company.
Home loan for young people
The home loan for young people is a very popular credit solution. This funding provides a quick and simple procedure. This is why it is preferred over a mortgage, the subscription of which requires more guarantees.
The home loan is ideal when low amounts are required. In case of need for more capital it is better to sign a loan contract for the interest rates applied.
The home loan does not provide as guarantee the registration of the mortgage on the apartment but it is clear that the Taeg is higher as it acts as a guarantee for the bank or credit institution that has provided the loan. There are many financing solutions to renovate the house and they change according to the type of bank and financial institution and above all according to the type of intervention to be done and the capital needed to carry it out.
The home renovation bonus
Those who want to change the face of their home can also take advantage of the home renovation bonus that has been extended for this year as well. Let’s talk about an important tool that allows any applicant to be able to scale expenses by 50%. This facility is provided for the renovation of owned properties: we are talking about maintenance, restoration and safety measures.
In order to take advantage of the 2019 home restructuring bonus, you must not go beyond the maximum spending threshold of € 96 thousand for each individual apartment.
To get this facility you just need to stay tuned a little and read the following. Young people interested in benefiting from this facility must indicate both the cadastral data of the property and the registration of the deed of possession during the compilation of the tax return. To this information – as published in the Revenue Agency’s guidelines – it will then be necessary to attach the ICI and IMU payment receipts, the registration request (if the house is not yet registered), ASL communication, declaration of consent to the start of the works by the owner of the building and granting of all the various authorizations required by law, substitutive declaration of the deed of notoriety where the dates of beginning and end of the works are indicated, receipt of the transmission of the communication Enea.
These are important indications for those who want to carry out restructuring work by next December 31st 2019. An opportunity that must not be lost at all, especially if you are young and you are building a base for your future. The Revenue Agency, in the guidelines, also lets us know about the importance of communicating data to ENEA. This information must be sent within 90 days of completion of the work . Otherwise you could run the risk of not benefiting from this important facility aimed at renovating your home.
The non-repayable grants are another highly requested financing solution. What is often asked is whether they can be used to renovate a home. We will try, therefore, below to make some clarity so that everyone can have a clear picture of it.
There is talk of non-repayable contributions to indicate that type of financing that should not be returned. These contributions are granted by local and national administrations to help the people who are in precarious conditions on the economic front.
These loans, therefore, do not entail the repayment of capital, nor of interest. The recipients of these grants are accounted for most of the cases in a ranking. Certainly there are some weak points, linked to the timing as the access to credit is very long, and to the requirements because it is clear that the conditions for accessing the capital are fairly tight. Another limit of non-repayable contributions is the budget: we are talking about free funding and therefore the capital provided cannot be very high.
The non-repayable grants are not paid to support renovation work in the home but usually to finance the businesses being opened.
With this type of financing, most of the cases are aimed at reaching out to encourage the growth of the entrepreneurial fabric, self-employment and female entrepreneurship. To the question that we have set ourselves at the beginning of this paragraph, therefore, we give a negative answer: at the moment there are no non-repayable loans aimed at those who want to renovate the house. Or at least they are not so recurrent. It must be said that the cases in which local administrations can proceed in this direction are not rare.
Watch out, then, not to be discouraged. Before giving up, check that there are no similar facilities on the official portals of Regions, Provinces and Municipalities.
The Guarantee Fund
Non-repayable contributions to renovate a home can be counted on the fingertips but there are other types of benefits for young people who want to change the look of their own walls. One of the easiest roads to follow is that of the Guarantee Fund , aimed at all those who want to buy a house and renovate it.
To take advantage of the Guarantee Fund for renovations, the object of the loan must be the first home. There are no other benefits for second properties.
With the Guarantee Fund it is possible to take out a loan at really favorable conditions. This is not a non-repayable grant but a real loan that is granted with very low interest rates. This facility is aimed at those who do not have the opportunity to access credit with traditional channels. This is why it is often young people who cannot guarantee the same guarantees as those who may have a permanent job with a permanent contract.
They can access the Guarantee Fund
- young couples where at least one of the two has not yet turned 35;
- single-parent families with dependent children;
- young people under the age of 35 with precarious work contracts;
- the recipients of housing for public housing. The loan must not exceed 250 thousand euros. The conditions of this form of financing are really facilitated. The interest rates are equivalent to the Euribor or to the IRS, to which must be added a very low spread, between 120 and 150 basis points.
Another aspect that should not be overlooked is that of income tax deductions, which allow you to download on the income tax how much we spent to renovate our house.
For all those renovations that involve an improvement on the energy class front, the deduction is 65% . For the rest, the deduction is 50%. In these cases the maximum amount of expenditure was set at 96 thousand euros. The deductions are divided into ten annuities. Only in this case the facilitation may also affect the renovation of second homes.
To access the Guarantee Fund, contact a bank. In the event that the bank appears to have an agreement, it will then proceed to make the request and act as intermediary. The first step, therefore, is to ascertain the presence of the bank in the list of banks belonging to the fund. To access tax deductions instead, you can either ask for information from your Municipality’s One-Stop Shop or interface directly with the technician who will take care of all the renovations. In fact, it is also up to them to submit the request for subsidies.
Apply for the Guarantee Fund only if you have the right requirements
The road is long and it takes time to analyze the request. A certain period of time will also pass in the event of refusal of application. Another aspect to take into consideration is that relating to the company that will carry out the restructuring operations. Here then it is essential to compare the various estimates to find a good value for money. The comparison between one company and another, through estimates, could in many cases also allow applicants to save thousands of euros.